Upgrade from a HDB Flat with Declining Lease to a New Condo: Mr & Mrs Tan
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​When Terence met Mr & Mrs Tan in 2017, they were living in a HDB 5-room flat in Ang Mo Kio. They had wanted to book a new executive condominium but were unsuccessful at the ballot. Mr & Mrs Tan were motivated to upgrade their home to help provide for the future needs of their two teenage children as well as fund their own retirement in their later years. They were also very concerned that the remaining lease of their flat was approaching 60 years and its market value may start to fall.

After gathering some details and working out the financials, Terence suggested the couple may want to consider upgrading to a private condominium instead. If Mr & Mrs Tan were to buy a new EC, the 30% MSR (mortgage serving ratio) ruling applies. They must also pay a resale levy, as they had taken a CPF grant for their HDB flat. They would need to wait for about 3 years for the new EC to be ready for occupation and another 5 years Minimum Occupation Period (MOP); a total waiting period of about 8 years if they want or need to sell. Terence recommended two private condominiums for their considerations. Mr & Mrs Tan then booked a new 4-bedroom private condominium in the Northern region of Singapore.

Thereafter, Terence proceeded to help Mr & Mrs Tan market and sell their HDB flat for 60% more than what they had paid for it in the resale market in 1998. However, since there was an outstanding mortgage and the large amount of CPF used for the flat and the compounding CPF accrued interest needed to be returned to their individual CPF Ordinary Account, Mr & Mrs Tan received zero cash proceeds from the sale (click here to learn about CPF accrued interest).

With the returned CPF cum accrued interest from the sale of the flat as well as their current CPF and cash savings, Mr and Mrs Tan were able to purchase the 4-bedroom condo. A reassuring safety buffer was also created, such that if both Mr & Mrs Tan were to be retrenched or out of work, their current CPF and cash savings will be sufficient to pay for their monthly mortgage installments for about 7 years! 
​Moreover, should Mr & Mrs Tan decide to cash-out in their later years and right-size to a smaller private apartment or a HDB flat, they can look forward to adding a few hundred thousand dollars more to their retirement fund!​

Upgrade Your Property Today & Start Growing Your Retirement Fund! 

​We have helped many married as well as single homeowners upgrade to an EC or a Condo, own their first private property or even own multiple private properties. We understand each of our clients is unique and may have different challenges, constraints, motivations and needs. How could we help you too?
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